In a noteworthy improvement, US regulation agency Fenwick & West has agreed to pay $54 million to settle claims arising from its authorized companies for the defunct crypto change FTX. The proposed settlement, filed in federal court docket in Miami on Friday, resolves allegations from FTX clients who accused the Silicon Valley-based agency of facilitating misconduct tied to one of many largest monetary frauds in US historical past.
Fenwick Denies Data Of FTX Illicit Actions Regardless of Settlement
Based on court docket filings as reported by Reuters, Fenwick & West served as a lead outdoors counsel for FTX through the change’s fast growth into a worldwide crypto buying and selling platform. Plaintiffs within the class motion lawsuit alleged the agency “helped to craft and implement methods that facilitated FTX’s fraud,” accusing the legal professionals of helping with regulatory and operational constructions later tied to the misuse of buyer funds.
The proposed settlement settlement nonetheless requires approval from US District Choose Okay. Michael Moore in Miami. Attorneys representing FTX clients, together with distinguished litigator David Boies, argued the deal was cheap and would forestall extended and dear litigation.
Nonetheless, Fenwick rejected allegations that it knowingly participated in fraudulent conduct. In a public assertion, the regulation agency stated it “was not conscious of the fraud at FTX,” including that it stood by the integrity of its authorized work. The $54 million settlement marks the most important settlement in a second wave of FTX-related class motion resolutions.
Different settlements embrace an $11.75 million cost from former FTX auditor Prager Metis and a $420,000 settlement involving former Miami Warmth participant Udonis Haslem, who promoted the change.
The Journey So Far
FTX collapsed in November 2022 after revelations that an estimated $11- $13 billion in buyer funds had allegedly been diverted to its sister buying and selling agency, Alameda Analysis. The change’s chapter triggered widespread panic throughout the digital asset market and erased $200 billion in international crypto market cap.
In 2024, founder Sam Bankman-Fried was convicted on fraud and conspiracy costs and sentenced to 25 years in jail. Though he pleaded not responsible and has since appealed the conviction, claiming the preliminary trial was unfairly prejudiced in opposition to him.
In the meantime, the FTX Restoration Belief has continued efforts to reimburse affected collectors underneath the corporate’s Chapter 11 restructuring course of. In March 2026, the property introduced a fourth distribution of roughly $2.2 billion, bringing cumulative repayments to eligible claimants near $10 billion. A number of buyer lessons, together with many US-based customers, have reportedly reached full or near-full restoration ranges underneath the court-approved compensation plan.
Featured picture from Adobe Inventory, chart from Tradingview
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